Politics revives gold fever in US
Investors are turning again to gold as a safe haven. But they may not know of the tax risks associated with owning a collectible item.
Gold has been seen as a safe haven for investors since at least the Middle Ages. Prices for the precious metal have jumped 9% this year, spurred by the monetary easing policies of the Federal Reserve and other central banks, according to Reuters. They may move higher if the Fed decides to undertake more bond purchases.
President "Obama did me a favor in some ways," Chicago jeweler Tobia Kahn told the FT. "Now people are buying gold and jewels not because they like them but because of fear. They’re trying to protect their wealth."
Folks are also worried about their guns. Sales of firearms soared in the weeks after the reelection of Barack Obama as people worried that the incumbent Democrat and his allies in Congress were going to crack down on sales of firearms, particularly assault weapons. Sales will eventually return to their normal rates as people realize that the chances of new gun control laws being enacted are slim to none. Gold prices will eventually retreat as well once the fiscal cliff is resolved, and it will be -- one way or another.
Meanwhile, people should cure their gold fever with gold-mining stocks or funds that own them instead of coins. Many investors may not realize that gold coins are considered by the Internal Revenue Service as a "collectible" with a capital gains rate of 28%. This even applies to exchange-traded funds that hold physical gold. Gold-mining stocks and funds that hold them are subject to this rate.
Hoarding gold coins does not make much economic sense unless you are certain that the U.S. economic system is going to collapse and you will need them for bartering purposes.
--Follow Jonathan Berr on Twitter @jdberr
More from Money Now
- What Cory Booker is learning about food stamps
- Why are gun stocks tumbling?
- Wild horses a headache for US government
P.S. When the dollar collapses, paper investments like gold stocks will be worthless. An ounce of gold is always worth an ounce of gold--that doesn't change.
The makeover will cost between $700,000 and $900,000."
To me, the bigger story here is; Why the heII does it cost almost a MILLION DOLLARS to replace one sentence????? And people wonder why the country's broke.........
Wasting time with Gold...huh, well maybe, BUT we only invest in Miners, so basically we are invested in Gold....But as an Equity or Stock, works for us !!
And sometimes works quite well....Bought a little more today, even.
Okay....I believe Am.Eagles, Can. Maples and Kruggerands(sp) are considered "collectibles"
under American IRS Laws....Along with bullion and other semi- or precious items of Jewlery or Metals.
SO I THINK, Jonathan is correct ?? As he stated....
But then I somewhat AGREE, with Tummy and Notso....
Barter and quiet trades are probably best way to go, BUT you walk a thin line and are basically pulling off something that is questionable...IMO.
And could be illegal by Law...?
But hell I kinda look at it this way, are you worst then the Rich Elitest, with off shore or
The Big Corps with their deposits outside of U.S. They just hide and conform to what THEY think is right.
History of Retro Active Immunity from Prosecution.
1. Granted for the illegal merger of six large banks back in 1964. (Too big to fail)
2. Granted for illegal wire taps. ( Fisa bill that led to the patriot act)
3. Granted for illegal use of torture.
4. Granted to Judges for excepting money that was not authorized by law. (SBX211)
All of our problems arise when government is above the law and when Corporations can pay politicians to grant them amnesty from the law. Nobody should be above the law. NOBODY
Life is great!
Chris Van Hollen & Elizabeth Warren in 2016 & 2020!
God bless Mom & Pop stores!
God bless unions and living wages!
DIE big and unregulated corporations and DIE Ayn Rand Capitalism, DIE!
God bless America!
You`re wasting your time with gold.That`s Archie Bunker thinking.When the fiscal
cliff is fixed the market will go thru the roof.
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
While incompetent bosses like Michael Scott and Andy Bernard typically can’t survive in the workplace, office romances are a very real part of corporate culture.
- Southwest Airlines turns less legroom into $773M
- 'American Idol' gets sorry ratings for season finale
- Powerball's wacky sense of humor
- Millions of Facebook's users are actually pets
- Can crowd funding rescue the LA Times?
- Domino's debuts a DVD that smells like pizza
- Average US retirement age climbs to 61
- McDonald's aims to slim down its 145-item menu
- Bathroom reading goes digital with iPad TP stand
[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.
The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More
More Market News
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.